April 23, 2024

Mergers & Acquisitions

With $40M In Series B round, Jiko offers companies T-bill parking

Starting out as a consumer-based mobile bank, Jiko, the fintech startup, is now foraying into corporate money storage.

In 2020, Jiko was the first fintech to procure a nationally regulated US bank. The company was also unique in using customer deposits to purchase short-term Treasury bills (T-bills). T-bills are short-term debt obligations supported by the US Treasury Department with a maturity of one year or less.

Last November, Jiko revealed that it received inquiries from other fintechs interested in leveraging its technology. Jiko’s co-founder and CEO, Stephane Lintner said that the sudden focus on T-bills encouraged the startup to rethink its strategy to capitalize on the rising demand.

A Series B funding round of $40 million has now been raised to help the startup meet demand. According to Jiko, its product, Jiko Money Storage, will provide companies across multiple industrial sectors with “low-cost access” to T-bills.

According to Lintner, T-bills offer a “highly competitive” potential yield to companies, especially startups with large amounts of cash. With its bank charter and experience as a broker-dealer, Jiko also hopes to guide its customers with safer banking activities.

It is clear that a number of investors are willing to bet on Jiko’s lofty claims. The Series B financing led by Red River West has raised a total sum of $87.7 million since 2016.

Jiko also plans to allow companies to store and move money round-the-clock on T-bills with “immediate liquidity”. Lintner believes this option will appeal more to investors in the current macroeconomic climate.

You can find latest fintech news, insightful analysis of the financial sector, and the latest events in the fintech world at our website.


Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *